Maritimes will transport natural gas from the Sable Offshore Energy Project off the coast of the Province of Nova Scotia, Canada, to markets in Atlantic Canada and the Northeastern United States.

Phase II construction began with the successful directional drilling of the Androscoggin River. Maritimes representatives continue to acquire property easements along the pipeline route. Officials announced that two major landowners — Central Maine Power Company and Georgia Pacific — have agreed to acquisition terms with Maritimes. Agreements with landowners have been reached on greater than 85% of the pipeline route that traverses Maine from Baileyville to Westbrook. In addition, pipe is arriving at railroad yards in Hampden, Maine, and South Portland, Maine. At the Rigby Yard in South Portland, 24-inch diameter steel pipe is being stored for construction that will begin in the early spring.

"We have made significant progress on the project with the completion of the Androscoggin River crossing. The preparations for the drilling of the Kennebec, Penobscot and St. Croix are underway and the successful negotiation of easements with the majority of landowners is encouraging. We are moving forward toward our in-service date of November 1, 1999," said Tom O’Connor, president of M & N Management Company, managing member of Maritimes.

Maritimes is owned by affiliates of Duke Energy Corporation (37.5%), Westcoast Energy Inc. (37.5%), Mobil Corporation (12.5%) and Nova Scotia Power Inc. (12.5%). Duke Energy, through its affiliates, is responsible for the overall development of the $1.2 billion Maritimes project and directly responsible for the U.S. portion of the project. Westcoast Energy Inc., a major energy company located in Vancouver, British Columbia, is responsible for the development of the Canadian pipeline portion of the project. Contact Maritimes on the World Wide Web at www.mnp-usa.com.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com.